Page 143 - BusinessStructures & Forms

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Generally, the corporation must provide certain information to abbreviate the country name. Follow the country's practice for
the shareholder if the corporation knows, or has reason to know, entering the name of the state or province and postal code.
the following. Item B. Business Code
1. The shareholder disposed of stock in the corporation.
2. The shareholder materially participates (within the See Principal Business Activity Codes, later. For nonstore
meaning of the passive activity loss rules (section 469)) in one or retailers, select the principal business activity (PBA) code by the
more of the trades or businesses (within the meaning of section primary product that your establishment sells. For example,
162) of the corporation or a subsidiary pass-through entity (other establishments primarily selling prescription and
non-prescription drugs, select PBA code 456110 Pharmacies &
than trading in financial instruments or commodities). Drug Retailers.
3. The shareholder doesn't qualify for the optional simplified
reporting method for figuring its net investment income Item C. Schedule M-3 Information
associated with the disposition of the stock. For more For 2022, a corporation that (a) is required to file Schedule M-3
information, see the instructions for Form 8960, line 5c. (Form 1120-S), Net Income (Loss) Reconciliation for S
Information to be provided to shareholder. Generally, the Corporations With Total Assets of $10 Million or More, and has
less than $50 million total assets at the end of the tax year, or (b)
corporation must provide the shareholder with its pro rata share
of the net gain and loss from the deemed sale for fair market isn't required to file Schedule M-3 (Form 1120-S) and voluntarily
value of the corporation's property, other than property that files Schedule M-3 (Form 1120-S), must either complete
relates to the trades or businesses in which the shareholder Schedule M-3 (Form 1120-S) entirely or complete Schedule M-3
(Form 1120-S) through Part I and complete Form 1120-S,
materially participates, as determined under the passive activity Schedule M-1, instead of completing Parts II and III of
loss rules applicable to the transfer of an interest in a
pass-through entity. For more information, see the instructions Schedule M-3 (Form 1120-S). If a corporation chooses to
for Form 8960, line 5c. complete Form 1120-S, Schedule M-1, instead of completing
Parts II and III of Schedule M-3 (Form 1120-S), line 1 of Form
If a shareholder, who qualifies for the optional simplified 1120-S, Schedule M-1, must equal line 11 of Part I of
TIP reporting method, prefers to determine net gain or loss Schedule M-3 (Form 1120-S).
under the general calculation, the corporation may, but
isn't obligated to, provide the information to the shareholder at Any corporation that completes Parts II and III of
the shareholder's request. Schedule M-3 (Form 1120-S) must complete all columns,
without exception.
If you are filing Schedule M-3, check the “Check if Sch. M-3
Specific Instructions attached” box. See the Instructions for Schedule M-3 for more
Period Covered details.
Item D. Employer Identification
File the 2022 return for calendar year 2022 and fiscal years that
begin in 2022 and end in 2023. For a fiscal or short tax year Number (EIN)
return, fill in the tax year space at the top of the form. Enter the corporation's EIN. If the corporation doesn't have an
The 2022 Form 1120-S can also be used if: EIN, it must apply for one. An EIN can be applied for in the
• The corporation has a tax year of less than 12 months that following ways.
begins and ends in 2023, and • Online—Go to IRS.gov/EIN. The EIN is issued immediately
• The 2023 Form 1120-S isn't available at the time the once the application information is validated.
• By faxing or mailing Form SS-4, Application for Employer
corporation is required to file its return. Identification Number.
The corporation must show its 2023 tax year on the 2022
Form 1120-S and take into account any tax law changes that are If the corporation hasn't received its EIN by the time the return
effective for tax years beginning after December 31, 2022. is due, enter “Applied for” and the date the corporation applied in
the space for the EIN. However, if the corporation is filing its
Name and Address returns electronically, an EIN is required at the time the return is
Enter the corporation's true name (as set forth in the charter or filed. For more information, see the Instructions for Form SS-4.
other legal document creating it) and address on the appropriate Item F. Total Assets
lines. Enter the address of the corporation's principal office or
place of business. Include the suite, room, or other unit number Enter the corporation's total assets (as determined by the
after the street address. If the post office doesn't deliver mail to accounting method regularly used in keeping the corporation's
the street address and the corporation has a P.O. box, show the books and records) at the end of the tax year. If there were no
box number instead. assets at the end of the tax year, enter -0-.
Don't use the address of the registered agent for the If the corporation is required to complete Schedule L, enter
TIP state in which the corporation is incorporated. For total assets from Schedule L, line 15, column (d), on page 1,
example, if a business is incorporated in Delaware or item F. If the S election terminated during the tax year, see the
Nevada and the corporation's principal office is located in Little instructions for Schedule L, later, for special rules that may apply
Rock, Arkansas, the corporation should enter the Little Rock when figuring the corporation's year-end assets.
address. Item G. Electing To Be an S
If the corporation receives its mail in care of a third party Corporation
(such as an accountant or an attorney), enter “C/O” on the street If “Yes,” attach Form 2553 if not already filed. Form 2553 must
address line, followed by the third party's name and street generally be filed no more than 2 months and 15 days after the
address or P.O. box. beginning of the tax year the election is to take effect. A Form
If the corporation has a foreign address, include the city or 2553 filed with Form 1120-S will generally be a late election. But
town, state or province, country, and foreign postal code. Don't with reasonable cause you may be able to request relief for the

Instructions for Form 1120-S (2022) -13-